Regulation cryptocurrency inevitable, according to IMF director Christine Lagarde
The head of the International Monetary Fund, Christine Lagarde, claims that the regulation of cryptocurrency is inevitable in the near future. This is because of the usefulness of budding technology as a tool that criminals can use to commit illegal activities. According to her, there must be an international 'framework'.
Last week at the World Government Summit in Dubai, the subject of 'cryptocurrency' was not avoided. Christine Lagarde, director of the International Monetary Fund, said during an interview with CNN Money that the regulation of crypto coins is a necessity.
- Christine Lagarde believes it is important to lay down rules so that the use of crypto coins for illegal practices can be restricted. The International Monetary Fund and other regulatory agencies are therefore determined to create a framework in which cryptocurrency can be used legally and in a controlled manner.
Just as was done with banks after the financial crisis of 2008, it is now necessary not to look at the entities but rather at the activities. Who does what, who has a license and who plays according to the imposed rules. According to her, this approach is inevitable in the crypto markets.
Last year Lagarde also said that crypto can cause enormous disruptions and that it is a threat to the global financial 'establishment'. Banks are not allowed to lose sight of virtual coins so that they can 'arm themselves' and prepare for possible changes.
- Her tight attitude towards crypto coins is appreciated by other financial institutions from the G20 countries. If virtual currencies remain popular, chances are that an international 'framework' for cryptocurrency will be created under the direction of, for example, central banks.
Sources: CCN
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